INTRA-COMESA TRADE GROWS TREMENDOUSLY

MBABANE – Intra-COMESA trade has grown tremendously from just around E26.5 billion (US$1.5 billion) in 2000 to over E247.9 billion (US$14 billion) in 2023.

This was said by Chileshe Kapwepwe, Secretary General (SG) of COMESA at the opening ceremony of the 44th Meeting of the Bureau of the COMESA Committee of Governors of Central Banks held yesterday at the Happy Valley Hotel. Kapwepwe said despite these gains, intra-COMESA trade remains a relatively modest 7 per cent of the region’s total trade and a much smaller portion relative to what the regions trades with the outside world.

The Common Market for Eastern and Southern Africa (COMESA) is a regional economic community in Africa with 21-member States stretching from Tunisia to Eswatini. COMESA was formed in December 1994, replacing a Preferential Trade Area, which had existed since 1981. The SG said as COMESA member States celebrate their achievements, they must also acknowledge the challenges that they face today. She noted that the geopolitical tensions that have emerged in various parts of the world, adverse climate events, a cost-of-living crisis among others, pose significant risks to member States’ economies and their integration efforts.

Persistent

She said these shocks are putting considerable strain to the regional economies and the world alike in the form of persistent disruption in global supply chains and increased inflation, increased volatility in global financial markets and tightening global financing conditions. “This has put considerable pressure on exchange rates in developing countries, which in turn has heightened debt vulnerability and increased domestic inflation. It is imperative that we remain vigilant and proactive in addressing these challenges, bolster our togetherness as a region and find solutions that work for us,” she said.

She added that central banks have a responsibility to incorporate these risks into their monetary policy frameworks and to support sustainable development initiatives that will help mitigate these effects. “In light of these and other challenges, I implore each of you to double your efforts and provide the desperately needed policy solution and remain on course towards deeper monetary and economic integration of the COMESA region. Our commitment to integration and economic stability must remain unwavering, even in the face of adversity,” she said.

The secretary general reminded the officials of the critical role that the COMESA Monetary Institute (CMI) and the COMESA Clearing House (CCH) play in their collective journey towards the region’s economic integration and stability. She said the progress and contribution made by these two institutions in working towards achievement of COMESA monetary and financial integration objectives is commendable, and it reflects their shared vision for an integrated region.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: